The Op Faces Crippling Tariffs, Considers Sending Games Back to China

The escalating trade tensions are hitting businesses hard, and the toy and game industry is no exception. In a recent interview with New York Times columnist Bret Stephens, Dane Chapin, CEO of The Op (known for popular games like Telestrations and Codenames), revealed the stark reality his company is facing due to soaring tariffs on goods imported from China.

The situation has become so dire that The Op is considering the drastic measure of sending back 15 containers of games to China. These games were shipped when tariffs stood at 20%. However, the subsequent dramatic increase to 145% means the company would be slapped with an additional $920,000 in costs just to bring them into the United States. This staggering sum presents an untenable financial burden for a company of The Op’s size.

Chapin didn’t mince words when expressing his frustration with the seemingly uneven application of trade policies. He highlighted the disparity between the challenges faced by smaller businesses like his and the exemptions seemingly granted to tech giants. Pointing to Apple’s massive $60 billion cash reserve and a market capitalization 231 times larger than the two biggest toy companies combined, Chapin questioned the fairness of the situation. “The toy industry is a blip economically, yet we have been put in deep peril by the chaotic and random execution of trade policy,” he stated.

Adding to the complexity, Chapin explained that, like many other game publishers, The Op lacks domestic manufacturing alternatives for the products they currently source from China. This leaves the company with few palatable options as they navigate this turbulent trade landscape.

The potential decision to send back these containers and the halt of all other China-based production underscores the significant impact that rapidly changing tariffs can have on businesses, particularly smaller ones with limited resources and supply chain flexibility. It raises important questions about the broader economic consequences of trade policies and the need for a more predictable and equitable approach that doesn’t disproportionately harm specific industries. The Op’s predicament serves as a stark reminder of the real-world challenges businesses face in the current global trade environment.